DALLAS, Feb. 21, 2012 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe and the securities litigation firm of Powers Taylor, LLP are investigating the sale of CH Energy Group, Inc. ("CH Energy") (NYSE: CHG) to Fortis Inc. for shareholders. Under the proposed transaction, CH Energy shareholders will receive $65.00 in cash for each share of CH Energy/CHG stock owned, which is well below the target price of $69.00 per share announced by analysts.
If you are an affected investor, and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
The definitive merger agreement involves an all cash transaction with a total equity value of approximately $1.5 billion, including assumption of debt. The deal is expected to close in the first quarter of 2013.
The investigation centers on whether CH Energy shareholders are receiving adequate compensation for their shares in the buyout, whether the transaction undervalues CH Energy stock, and whether CH Energy's board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal. Although the acquisition price represents an approximate 10% premium over the closing price of CH Energy shares the day prior to the buyout announcement, CH Energy shares closed as high as $59.37 per share as recently as December 29, 2011. Further, according to Yahoo! Finance, at least one analyst has reported that the true inherent value of CH Energy shares may be as high as $69.00 per share. According to shareholder rights attorney Willie Briscoe, "Because of the lack of a significant premium to the shareholders and other factors, we believe that the transaction may undervalue CH Energy stock. Our lawsuit will seek to obtain the highest share price for all shareholders."
The Briscoe Law Firm, PLLC is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
SOURCE Powers Taylor, LLP